Falling oil prices are supporting equities as easing geopolitical tensions reduce inflation concerns and pull bond yields lower. After surging during the height of the Iran conflict, oil retreated as the U.S. and Iran resumed negotiations, despite recent violations of their memorandum of understanding. Markets also welcomed President Trump’s decision to refrain from escalating military action following attacks on U.S. bases, with fresh talks beginning today. $USO $MU $AMD $SKHY $BMY
Lower Treasury yields are being driven by the decline in oil prices and coordinated U.S.–Japan intervention to strengthen the yen, providing a tailwind for stocks. However, gains are being tempered by weakness in South Korea, where the Kospi dropped more than 5%, dragging major semiconductor names lower. Samsung and SK Hynix both posted steep declines overnight, weighing on U.S. chipmakers, with Micron among the hardest hit in early trading.
Investors are now turning their attention to a busy week of catalysts. Earnings from AMD and SpaceX are due on August 4, followed by Sandisk on August 5, while the expiration of the SpaceX lockup could add volatility to markets.
Elsewhere, merger discussions between Bristol-Myers Squibb and AstraZeneca are drawing attention, with the potential to reshape the pharmaceutical sector if negotiations progress. Overall, lower yields remain supportive, but semiconductor weakness continues to act as a key headwind for broader market sentiment.
